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NJ Real Estate - Split Listing Question
June 11, 2014 4:16 PM   Subscribe

Hello, I am new in the Real Estate business, and I don't have too many people to ask questions to. I am going to list my parents house for sale as an agent, this woman offered to help guide me through the process if I split the listing with her. She originally wanted 50% of the commission, I told her that was not going to happen, I offered 25%. The way she explained it, is that when my parents sign the listing agreement, both her name and my name have to be on the listing. I am nervous about this proposition, I am wondering if I could somehow get her into a subagency contract for 25%, rather then having her directly on the listing? ------ Thanks, Leon
posted by MrLLG to Work & Money (5 answers total) 1 user marked this as a favorite
 
Unfortunately, you will need legal advice on this sort of agreement. Real estate law (and generally accepted practice) varies greatly from state to state.

In general terms though, she is trying to protect her own interests by being on the listing agreement. Subagency is a fairly outdated concept (before there was dedicated Buyers Agency), and doesn't really apply to the situation. It would also give her zero leverage to collect 25% of the commission.

Most simply, you probably need to be listed as cooperating agents, with your splits defined (what percentage if you sell it, or if a buyer's agent is involved, or if she brings a buyer to the table). You should absolutely consult an attorney with experience in real estate.
posted by shinynewnick at 5:00 PM on June 11


You should have a broker in charge, and that is whom you should be addressing this question to.

Normally if you get a more experienced agent to help you , they should get a portion of the deal, but yes, Real Estate laws vary according to location and the very best person to help you with this question is your B-I-C.
posted by St. Alia of the Bunnies at 6:41 PM on June 11 [1 favorite]


dump her like a hot rock. your broker in charge (thank you st. alia) is in best position to guide you in this matter. there will be time enough for the predatory woman to share the commission IF SHE CAN BRING YOU A BUYER.
posted by bruce at 9:05 PM on June 11 [3 favorites]


You need to be working under a more experienced broker
(qualifying broker, broker in charge) who can help you with these sorts of questions. Some states actually require your licence to be via a particular broker who will register you with the state. Generally you would have some sort of ongoing agreement as to how you would compensate this person/business, which might not be on a straight commission.

If you consult your state laws you should be able to find out how it works in your state.

If what this person is proposing is legal where you live having a lawyer look over the agreement is a good idea. Even if you go with the arrangement she's offered, you'll want to settle details like for how much time from the listing date this agreement will be in effect, and if she is to receive anything if your parents get an offer on the house that they do not accept.

You'll also want to clarify what exactly this person will be doing.
posted by yohko at 11:58 AM on June 12


Adding to the chorus - this is why you have a broker, and if you are set up in a situation where that isn't the case (AKA Keeping your license under someone not involved in day-to-day business), you will be in a world of hurt.
posted by shinynewnick at 12:33 PM on June 12


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